THE SENATE	S.B. NO.	744
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

relating to minimum wage.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 387-2, Hawaii Revised Statutes, is amended to read as follows:

"§387-2 Minimum wages[.]; living wage. (a) Except as provided in section 387‑9 and this section, every employer shall pay to each employee employed by the employer, wages at the rate of not less than:

(1) $6.25 per hour beginning January 1, 2003;

(2) $6.75 per hour beginning January 1, 2006;

(3) $7.25 per hour beginning January 1, 2007;

(4) $7.75 per hour beginning January 1, 2015;

(5) $8.50 per hour beginning January 1, 2016;

(6) $9.25 per hour beginning January 1, 2017; [and]

(7) $10.10 per hour beginning January 1, 2018[.];

(8) $11.00 per hour beginning January 1, 2020;

(9) $12.00 per hour beginning January 1, 2021;

(10) $13.00 per hour beginning January 1, 2022;

(11) $14.00 per hour beginning January 1, 2023;

(12) $15.50 per hour beginning January 1, 2024;

(13) $17.00 per hour beginning January 1, 2025; and

(14) The rate established under subsection (d) beginning January 1, 2026.

(b) The hourly wage of a tipped employee may be deemed to be increased on account of tips if the employee is paid not less than:

(1) 25 cents;

(2) 50 cents per hour beginning January 1, 2015; and

(3) 75 cents per hour beginning January 1, 2016,

below the applicable minimum wage by the employee's employer and the combined amount the employee receives from the employee's employer and in tips is at least 50 cents more than the applicable minimum wage; provided that beginning January 1, 2015, the combined amount the employee receives from the employee's employer and in tips is at least $7.00 more than the applicable minimum wage.

(c) On September 30, 2019, and on September 30 each year thereafter, the department shall calculate an adjusted living wage rate. The department shall determine the percentage increase in the rate of inflation, as measured by the Honolulu region consumer price index for all urban consumers, CPI-U, as calculated by the United States Department of Labor during the twelve-month period immediately preceding that September or, if that data is unavailable, during the most recent twelve-month period for which data is available. The living wage rate shall be increased by the percentage calculated by the department, rounded to the nearest cent; provided that if, after conducting the calculations required under this subsection, the calculations for the current year lead to a lower living wage than that of the previous year, the department shall set the living wage for the current year at the same rate as the previous year.

(d) On January 1, 2026, and on January 1 of each year thereafter, the minimum wage rate in paragraph (a) shall either increase ten per cent or change to the new adjusted living wage established pursuant to subsection (c), whatever is lower, and then rounded to the nearest cent."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Labor; Minimum Wage; Living Wage; Department of Labor and Industrial Relations; Consumer Price Index

Description:

Establishes a living wage rate to be adjusted according to the consumer price index. Requires the Department of Labor and Industrial Relations, on January 1, 2026, and each subsequent year, to increase the minimum wage rate by ten per cent or pursuant to the most recent adjusted living wage, whichever is lower.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.